You may now get almost anything you need on the internet. In fact, more people today prefer to purchase online from the comfort of their own homes rather than visiting a shopping store. Because of COVID-19’s mobility limitations, online shopping and e-commerce have become the ideal marketplace for both buyers and sellers.
Having an eCommerce business offers a lot of potential for success, but it also comes with some challenges.
8 Biggest eCommerce Challenges in 2021 and Their Solutions
Although it offers enormous potential for growth and success, there are some eCommerce concerns that retailers must address in order to succeed in today’s globally competitive industry. So, if you own a small or large e-commerce business, you should read this attentively!
1. Customer Experience
A successful eCommerce website relies heavily on the customer or user experience. Shoppers anticipate a similar, if not identical, experience to that of a traditional brick-and-mortar business. The website’s flow, segmentation, and retail customization of products based on the shopper’s choices are critical.
Solution: There are a number of things that may be done to improve the user experience. The most crucial aspect is to have a clean and straightforward website that customers can easily explore. The next step is to create clear CTAs (calls to action) so that the shopper understands what to do.
2. Verification of Online Identity
How does an online retailer know if a customer is who they claim they are when they visit an eCommerce site? Is the information provided by the shopper correct? Is the shopper actually enthusiastic about the eCommerce goods?
How do you proceed if you don’t have accurate details or information? It does, obviously, become difficult. Investing in online identification verification would be the solution.
Solution: There are various methods for incorporating online identity verification. Biometrics, artificial intelligence, single sign-on, one-time passwords, two-factor authentication, and other technologies are examples.
3. Data & Cyber Security
One of the most difficult difficulties in eCommerce is security breaches. When dealing with eCommerce, there is a lot of information/data involved, and a technical issue with data can cause severe damage to the retailer’s everyday operations as well as brand image.
Solution: Always be cautious and back up your data. After that, you can use security plugins to prevent your website from being hacked. There are various plugins available; choose the one that best suits your eCommerce website.
4. Converting Shoppers into Paying Customers
Converting visitors into paying customers is one of the most difficult ecommerce issues. An eCommerce website may receive a lot of traffic, clicks, and impressions, but it isn’t generating the revenue it expects. What can they do in order to increase sales?
Solution: The first and most important step is to figure out why your customers aren’t converting — are you targeting the correct people? Is your mobile website running smoothly? Do your online platforms experience technological difficulties on a regular basis? Do your customers have faith in you? Do you tailor your website to the needs of your customers? Always consider the shopper’s point of view and whether you are doing all necessary to convert them into paying consumers.
5. Customer Loyalty
Here are two statistics that demonstrate the significance of client loyalty: (a) Acquiring a new customer can cost up to 5 times more than keeping an existing one, and (b) selling to a present customer has a 60-70% success rate compared to only 5-20% for selling to a new customer.
The importance of customer retention or loyalty is demonstrated by the above two facts. When a consumer makes a purchase or uses a service from a store, the retailer must ensure that the customer is retained for life. How is this possible, though?
Solution: These are some of the ways that can be utilized to keep customers. The first is to provide good customer service — a customer is glad to have acquired a fantastic product, but they are overjoyed when the customer service is excellent.
The next stage is to stay in touch with the client in a way that they prefer — whether it’s by email, SMS, or blog postings – figure out what works best for your consumer. The final point would be to inform them about new items, sales specials, and special discount codes as a thank you for being such devoted shoppers.
6. Competition & Competitor Analysis
What is a Jam Experiment, exactly? Its conclusion, though, is rather controversial: the less you offer customers, the more likely they are to buy something. Many people these days are overwhelmed by the number of choices available. How does one choose from thousands of possibilities when searching for headphones?
How does a store differentiate itself from the competition? How do they get customers to visit their website instead of going to a competitor’s website to buy a similar product?
Solution: Always conduct a comprehensive examination of your competition. Learn about the things they sell, how they generate leads, and how they communicate with their consumers. The next step would be to ensure that you stand out – whether through the colors you employ, the excellent functioning of your website, or an exceptional user experience. Finally, provide services or goods that are one-of-a-kind and relevant to your target base.
7. Product Return & Refund Policies
More than 60% of online customers, according to ComScore, explore a retailer’s return policy before making a purchase. When a retailer declares “no returns or refunds,” it makes a shopper feel uneasy and makes them less likely to trust them. Customers desire the freedom to make a mistake that doesn’t cost them money while shopping online.
Solution: For any retailer, customer satisfaction is the most crucial factor. As a result, having a flexible return and refund policy not only improves customer happiness, but it also makes it easier for customers to make purchases without feeling hesitant.
8. Price & Shipping
We’ve all heard of customers who prefer to buy things from stores that provide free shipping. Customers rarely look elsewhere since eCommerce behemoths like Amazon offer such enticing shipping deals. How does one reduce shipping costs?
Solution: While no eCommerce site can totally eliminate delivery costs, you should constantly explore for methods that work for your consumer base. Would a membership lower delivery costs? Would there be a lower delivery cost if they ordered at a certain period of the month? Is there a carrier that is dependable but has a lower rate? Make sure to do your homework and find the best answer for your customers.
Businesses should act as modern multichannel retailers to address these eCommerce problems. They should concentrate on transforming data into market-leading insights, expertise, and counsel. Personalization at scale may inspire buyers and drive loyalty, which can enable them sustain their brand, business model, and international expansion.
In this increasingly competitive world, entrepreneurs must employ smart digital retail strategies in order to manage the eCommerce difficulties that online businesses face with the correct set of technologies. Finally, all of this must be supported by great digital leadership, which provides clarity and support with the appropriate resources to assist a business in becoming a market leader.